© 2008 TSMC, Ltd

Proprietary

TSMCTSMC

2007 Fourth Quarter2007 Fourth QuarterInvestor ConferenceInvestor Conference

January 31, 2008January 31, 2008

© 2008 TSMC, LtdP. 2

ProprietaryAgenda

Welcome Elizabeth Sun

4Q07 Financial Results and 1Q08 Outlook Lora Ho

CEO Comments Rick Tsai

Q&A Rick Tsai /

Lora Ho

© 2008 TSMC, LtdP. 3

ProprietarySafe Harbor Notice

TSMC’s statements of its current expectations are forward-looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained inthe forward-looking statements.

Information as to those factors that could cause actual results to vary can be found in TSMC’s Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the “SEC”) on April 20, 2007, TSMC’s registration statement on Form F-3, filed with the SEC on May 8, 2007, and such other documents as TSMC may file with, or submit to, the SEC from time to time.

Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

© 2008 TSMC, LtdP. 4

Proprietary4Q07 Financial Highlights

4Q07 4Q07(In NT billions except otherwise noted) Results Guidance

Net Sales 93.86 92 - 94 5.5% 25.2%Gross Margin 47.8% 46% - 48% +2 ppt +1.8 pptOperating Margin 39.2% 37% - 39% +2.8 ppt +2.6 ppt

EPS - Diluted (NT$) 1.31 14.3% 24.3%

Free Cash Flow 39.98 51.9% 12.9%

ROE (%) (1) 27.9% +2.9 ppt +5.3 ppt

Shipment (Kpcs, 8"-equiv. Wafer) 2,357 5.9% 37.2%

QoQ YoY

(1) Annualized ROE for the quarter based on average equity attributable to shareholders of the parent.

4Q07 4Q07 3Q07 4Q06(In NT billions except otherwise noted) Results Guidance Results Results

Net Sales 93.86 92 - 94 88.96 74.96 5.5% 25.2%Gross Margin 47.8% 46% - 48% 45.8% 46.0% +2 ppt +1.8 pptOperating Margin 39.2% 37% - 39% 36.4% 36.6% +2.8 ppt +2.6 ppt

EPS - Diluted (NT$) 1.31 1.15 1.06 14.3% 24.3%

Free Cash Flow 39.98 26.32 35.41 51.9% 12.9%

ROE (%) (1) 27.9% 25.0% 22.6% +2.9 ppt +5.3 ppt

Shipment (Kpcs, 8"-equiv. Wafer) 2,357 2,226 1,718 5.9% 37.2%

QoQ YoY

© 2008 TSMC, LtdP. 5

Proprietary4Q07 Revenue by Applications

0.0

40.0

3Q07 4Q07

Communications

42%

Consumer

15%

Computer

35%

Industrial/Others 5%

Memory 3%

QoQ +5%

0.0

40.0

3Q07 4Q07

QoQ +15%

0.0

40.0

3Q07 4Q07

QoQ -7%

ComputerCommunications Consumer

© 2008 TSMC, LtdP. 6

Proprietary4Q07 Revenue by Technology

0.11/0.13um

20%

0.15/0.18um

27% 90nm

29%

0.5um+

4%

0.25/0.35um

10%65nm

10%

10.0%

0

10

1Q07 2Q07 3Q07 4Q07

Rev

enue

(NT$

B)

0%

2%

4%

6%

8%

10%

% of Sales (%

)

Rev (NT$B) % of Sales

65nm revenue increased by more than 17 folds in 4 quarters

17X

© 2008 TSMC, LtdP. 7

ProprietaryMargin Expansion Driven by Cost

Improvement and Operating Leverage(In NT billions except otherwise noted) 4Q07 3Q07 4Q06

Net Sales 93.9 89.0 75.0

Gross Margin 47.8% 45.8% 46.0%

Operating Expenses (8.1) (8.4) (7.0)

Operating Margin 39.2% 36.4% 36.6%

Non-Operating Items 1.7 1.1 1.7

Long-Term Investment Gains 0.9 0.8 0.4

Taxes (4.6) (3.6) (1.5)

Net Income 34.5 30.4 27.9

Net Margin 36.7% 34.1% 37.2%

EPS (NT Dollar) 1.31 1.15 1.06

Operating Expenses as a % of Sales 8.6% 9.4% 9.4%

ROE 27.9% 25.0% 22.6%

© 2008 TSMC, LtdP. 8

ProprietaryStrong Balance Sheet Entering 2008

• Asset productivity is defined as annualized net sales/average net fixed assets.

(In NT billions except otherwise noted) 4Q07 3Q07 4Q06

Cash & Marketable Securities 174.8 176.4 195.1

Accounts Receivable - Trade, net 42.4 42.4 31.6

Inventory, net 23.9 24.5 21.4

Fixed Assets, net 260.3 265.2 254.1

Total Assets 570.9 586.4 587.5

Total Liabilities 80.2 81.8 78.3

Total Shareholders' Equity 490.7 504.6 509.1

Asset Productivity (times) 1.4 1.3 1.2

Cash & Marketable Securities as a %of Total Assets

30.6% 30.1% 33.2%

© 2008 TSMC, LtdP. 9

ProprietaryContinued Strong Cash Flows

• Free cash flow is defined as operating cash flow – capital expenditures.

(In NT billions except otherwise noted) 4Q07 3Q07 4Q06

Beginning Balance 98.3 163.4 92.9

Cash from operating activities 59.8 51.1 53.0

Capital expenditures (19.8) (24.9) (17.6)

Cash dividends 0.0 (77.4) 0.0

Share buybacks (45.4) 0.0 0.0

Repayment of corporate bonds (4.5) 0.0 0.0

Short-term investments/others 6.6 (13.9) (10.5)

Ending Balance 95.0 98.3 117.8

Free Cash Flow 40.0 26.3 35.4

© 2008 TSMC, LtdP. 10

Proprietary

Fab-2 ( 6") 1 257 257 273 273 1,060 248Fab-3 ( 8") 259 262 267 269 1,057 277Fab-5 ( 8") 144 155 163 166 627 165Fab-6 ( 8") 245 255 274 279 1,053 265Fab-8 ( 8") 239 239 260 265 1,004 262Fab-12 ( 12") 2 169 180 198 212 759 197Fab-14 ( 12") 2 103 113 154 176 546 167WaferTech ( 8") 104 105 106 106 419 105TSMC (Shanghai) ( 8") 90 94 99 92 375 88

TSMC & Subsidiaries 1,836 1,913 2,113 2,202 8,064 2,120 (8" Equivalent Kpcs)

SSMC ( 8") 53 55 56 61 226 63

Total TSMC-managed 1,890 1,967 2,169 2,263 8,290 2,182 (8" Equivalent Kpcs)

1Q08(F)

4Q07(A)

2007(A) FAB / (Wafer size)

1Q07(A)

2Q07(A)

3Q07(A)

Note: 1 Figures represent number of 6” wafers. Conversion to 8”-equivalent wafers is obtained by dividing this number by 1.78.2 Figures represent number of 12” wafers. Conversion to 8”-equivalent wafers is obtained by multiplying this number by 2.25.

Installed Capacity

© 2008 TSMC, LtdP. 11

ProprietaryCapital Expenditures

(In US millions) 4Q07 2007 2006

TSMC 577 2,475 2,410

XinTec and GUC 16 47 3

TSMC Shanghai & WaferTech 17 31 42

Other TSMC Subsidiaries 1 4 2

TSMC Consolidated 611 2,557 2,457

CapEx /Sales Ratio 26.0% 25.2%

* 2007 CapEx was based on the weighted average exchange rate of NT$32.853 per US dollar.

© 2008 TSMC, LtdP. 12

Proprietary2007 Financial Highlights

Delivered 6th consecutive year of top line growthProfitability declined due to lower utilization and lower ASPRecord amount of cash returned to shareholdersFinancial strength to support growth and shareholder returnROE > 20% for the 4thconsecutive year

(In NT billions except otherwise noted)

Net Sales 322.6 317.4 1.6%Gross Margin 44.1% 49.1% -5 pptOperating Margin 34.6% 40.1% -5.5 ppt

EPS - Diluted (NT$) 4.14 4.81 -13.9%

Free Cash Flow (FCF) 99.8 126.3 -21.0%Cash Dividends 77.4 61.7 25.3%Share Buybacks * 48.5% of FCF Returned 126.1% 48.9% +77.2 pptCash & MarketableSecurities 174.8 195.1 -10.4%

ROE 21.9% 26.6% -4.7 ppt

* Includes share buybacks executed in 2007 but settled in 2008.

YoY2007 2006

© 2008 TSMC, LtdP. 13

Proprietary

US$0.2B

US$1.5B

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

2004 2007

Cash Returned to ShareholdersCumulative NT$253B (US$7.8B) Since 2004

Increasing Cash DividendIncreasing Cash Dividend

1 2007 share buyback amount includes buybacks executed in 2007 but settled in 2008 (US$0.1B).

Share BuybacksShare Buybacks

NT$0.6

NT$2.0

NT$2.5

NT$3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2004 2005 2006 2007Year Paid

Cash

Div

iden

d pe

r Sha

re (N

T$)

© 2008 TSMC, LtdP. 14

Proprietary1Q08 Guidance

Revenue is expected to be between NT$87 billion and NT$89 billion

Gross profit margin is expected to be between 42% and 44%, including approximately 2.5ppt impact from the expensing of employee profit sharing

Operating profit margin is expected to be between 32% and 34%, including approximately 4.7ppt impact from the expensing of employee profit sharing

2008 capital expenditure will be around US$1.8 billion

© 2008 TSMC, LtdP. 15

ProprietaryRecap of Recent Major Events TSMC Completes Share Buyback Plan (2007/12/31)

TSMC Announces Multi-layer Mask Service (2007/12/27)

TSMC Ships One-Millionth 12-Inch 90NM Wafer (2007/12/03)

TSMC Unveils New 65-Nanometer Mixed-Signal and RF Tool Qualification Program (2007/12/13)

TSMC and NXP Unveil Seven Innovations at IEDM Conference (2007/12/12)

TSMC Reports Foundry's First 32-Nanometer Technology with Functional SRAM (2007/12/11)

TSMC and NetLogic Microsystems Collaborate on Industry-Leading 55nm Technology for Advanced Low-Power Knowledge-based Processors (2007/11/27)

TSMC Appoints Maria Marced President of TSMC Europe (2007/11/16)

Qualcomm Makes First Call with Chips Using TSMC's 45nm Technology (2007/11/14)

TSMC Board of Directors Approves Plan to Buy Back Shares from Open Market (2007/11/13)

TSMC Recognizes Outstanding Suppliers at Supply Chain Management Forum (2007/11/02)

* Please visit TSMC's Web site (http://www.tsmc.com) for details and other announcements.

© 2008 TSMC, Ltd

Proprietary

http://www.tsmc.comhttp://www.tsmc.cominvest@tsmcinvest@tsmc.com.com